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Security Contract Pricing Calculator

Work out security contract pricing instantly with clear inputs, formula shown and shareable results.

About Security Contract Pricing Calculator

Manned guarding is priced per delivered hour, but costed hours must include a relief factor of around 22% for leave, sickness and training so that cover is never dropped. Pricing on delivered hours alone leaves the relief cost unrecovered.

Formulas

Monthly guard hours

Hours = Positions x Hours per day x 30.44

Costed hours

Costed = Delivered hours x 1.22 relief factor

Price

Price = Costed hours x Hourly cost / (1 - Target margin %)

Worked example

With the default values below, Security Contract Pricing Calculator returns Monthly contract price of $608,681.21. Change any input above and every figure here is recalculated in your browser.

Inputs used

Guard positions to cover
2
Hours per day covered
24
Guard hourly cost including statutory costs
280
Target margin
18

Results

Monthly contract price
$608,681.21
Monthly guard hours to deliver
1,461.1
Costed hours including relief factor
1,782.6
Price per guard hour delivered
$416.59

Step by step

  1. 1Values used
  2. 2Monthly guard hours
  3. 3Costed hours
  4. 4Price
  5. 5Monthly contract price= 608,681.21
  6. 6Monthly guard hours to deliver= 1,461.1
  7. 7Costed hours including relief factor= 1,782.6
  8. 8Price per guard hour delivered= 416.59

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is the margin lower than other services?

Because manned guarding is labour pass-through with little differentiation. Margins of 12-20% are typical and competitive tenders push them lower.

What drives cost overruns?

Unfunded overtime when relief is inadequate, and statutory wage increases mid-contract without an escalation clause.

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